Archive for May, 2013

Mitch Joel has a new book out and it made me so damn uncomfortable! It is an eye-opening, sobering view of what it is going to take to compete … not just in the future, but right now. And it’s not going to be easy.

I was happy to catch up with Mitch and talk to him about the new release. Be sure to watch the insightful interview I have posted above to understand why Mitch thinks we are in a period of “leadership hell.”

In his book, Mitch emphasizes that we need to act NOW to adjust to five converging forces:

#1 – Direct relationships with consumers – The real opportunity of social media connection. Don’t abdicate the personal relationship to a third party or big box retailer!

#2 – Utility – We have too much of everything on the web. Be useful to cut through the clutter. He also features an all-time great case study for Charmin Tissue! If toilet paper can have a useful digital presence, can’t you?

#3 – Active media – Create media that provokes consumers to interact.

#4 Sex with data – Not just data mining. Data understanding, This is what leads to discoveries and action.

#5 – One Screen Marketplace – It’s not three screens — marketing is only about the screen that is currently in front of your consumer at that moment.

As I mentioned, CTRL ALT Delete is unnerving in its scope but ultimately practical in that it provides solid advice on how to deal with these cataclysmic changes, both on a personal level and a business level.

Some of the urgent scenarios he presents seem daunting. That’s why you need to keep this book in front of you for the next 12 months as a reminder to “deal with it, deal with it, deal with it.” This is not some pie in the sky prognostication. It is already here, it is already happening.

We simply must adjust or risk obsolescence. You see, Mitch is more than smart. He’s also right.

There was a lot of buzz on the Internet last week about a report and infographic from Manta.com stating that 60 percent of small business owners are not realizing a return on their social media marketing efforts.

The results of this survey were reported on

NBC News

Entrepreneur.com

USA Today

The Austin Business Journal

Small Business Trends

… and dozens, perhaps hundreds, of blogs.

It took a little digging, but here is an example of why we need to take this kind of information with a grain of salt. The Manta research was not a national survey. It was not a representative survey. It is not a statistical extrapolation of the current state of social media.

This was a survey of 1,200 of Manta’s own customers. And yet it is being reported as a national trend by the mainstream news media?

None of the news channels disclosed that this was a survey of the company’s site members. In fact, most didn’t even link to the survey. They just linked to the original USA Today article.

This survey is a mildly interesting data point, but if I were reporting on this press release from Manta, I would have wanted to know:

How was the question asked?

What was the response rate?

Is that sample size representative and sufficient to forecast a national trend?

I have to give credit to whoever is doing PR for Manta. This is a relatively obscure small business site that is attracting massive press through their surveys and infographics. In a world of paralyzing information density, they figured out a way to cut through the clutter and attain incredible exposure. Here is what I take away from this case study:

Apparently anybody can dupe the national news media by creating provocative survey results and an attractive infographic.

If you can just dupe one national news outlet, you’re likely to dupe them all because nobody digs for the truth or even cares about the truth. They want to break a story fast with diminishing resources devoted to checking facts. So, they just copy the other guy.

Bad news sells better than good news. Ironically, the spin on the original press release from Manta was positive, focusing on the 40 percent of companies who were realizing measurable gains from social media. But the press turned it upside down because negative news attracts more readers than positive news.

So after all this, what is the truth? Are businesses getting any benefit from social media marketing?

In a survey published just two months prior to the Manta research, The McKinsey Global Institute polled 4,200 executives and found that 72 percent of their businesses used some form of social media marketing and 90 percent of those businesses reported receiving business benefits from those efforts. The report has a detailed appendix explaining the robustness of its methodology that is more than 30 pages long.

One of the things I took away from the recent SXSW conference is the frenzied search going on to find new ground for our marketing messages. The media landscape is a mess. TV, radio, and newspaper advertising are in a freefall. Online ad click-though rates are dropping. Nobody is quite sure how to master “native advertising” that cleverly embeds ad messages in content.

All the old “pipelines” for our content are drying up. So one viable alternative is to borrow somebody else’s pipeline.

Today, bloggers, podcasters, and home video producers are gaining consumer mindshare through their passionate and entertaining content. No wonder this is the new media gold rush — influencer outreach.

I have a 360-degree experience with this trend as I strategize with clients, advise agencies, and become a target for outreach programs myself. And what I see is not pretty. Sure we have tons of content. We have lots of wonderful new alternatives to identify influencers. Now, what do we do about it?

I think the core competency that needs to develop is a mindset transformation from a “purchaser of ad space” to a “developer of relationships.” Here is a model to get you thinking about this in a new way.

There are three social media influencer pipelines available to us today … let’s look at what this means.

Celebrity

Think in terms of Kim Kardashian and the huge and rapt social media channel she has developed.

Influence is based on “being known”

No “rich” content like blogs necessary

Enormous “pipeline”

Endorsement is purchased

Little or no true brand engagement

Goal: “Image.” Certain brands may pay to access this pipeline just to be associated with this person’s image and lifestyle.

Influencer

Think in terms of a blogger like Chris Brogan who might promote products through their content, including products unrelated to his core business

Influence based on authoritative, original content and social proof of a large following

Advocate

Think of a content creator who creates passionate videos about their favorite fashions and shopping experiences.

Influence based on passion and authority

Targeted, relevant “pipeline”

Authentic content

Organic, unpaid advocacy

High brand engagement due to true belief in the product and company

Goal “Drive word of mouth attention and sales”

All of these “pipelines” are legitimate options depending on brand strategy but in a short blog post, I can only cover this on a very high level!

Obviously there are many complications and nuances to this general idea. For example, as the diagram above indicates, there can be overlaps. An “influencer” like Chris Brogan can also be an authentic advocate (and he often is). An advocate can also be a celebrity, of course.

Arguably somebody like Seth Godin could fit in all three categories — he is a celebrity often featured through the mainstream media, he is a content-based influencer, and he goes out of his way to authentically advocate people and products he believes in, without compensation.

The transformational challenge

I think one implication of this development is that there is still an opportunity for quick “advertising” opportunities but many companies and agencies should also be thinking about a more holistic approach to their outreach efforts, including the patient and hard work of developing authentic, long-term relationships with advocates.

These connections are not established through money, sponsorships, and endless streams of infographics. They only occur through authentic helpfulness and genuine personal connection. This requires a change in approach from “buying space” to “earning hearts:”

Aim to patiently develop long-term relationships

Maintain consistent connection — even when you don’t expect anything

Make a live connection whenever possible. This creates an irreplaceable bond.

Aim to create a partnership or friendship, not a “target audience”

Employ scarcity — Make them feel part of something special

Provide useful content and services built on “trust” not “pay”

There is so much to think about here — I could literally write a post about each of these elements! But I wanted to get the general thinking out there because I see such a dramatic need for this in the marketplace right now.

What do you think about these ideas? Do you have an influencer outreach strategy for your company?

Subscribe to {Grow}

Welcome to {grow}

You’re in marketing for one reason: Grow.
Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.
-Mark Schaefer